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Reasons Why to get a Visa Credit Card

The Visa Credit Card is one of the most respected and reliable credit cards in the world. This comes as no surprise since the company behind it has offered reliable and trustworthy services for many decades. The Visa Credit Card is also for its collaborations with many other companies and retail stores. There are many types of Visa Credit Cards available and you can pick from the wide selection of cards depending on your needs. You can also get a Visa Credit Card from any bank that is a member of the Visa association.

Visa was created by the banks ...


Is Tokenization the New Credit Card Security Wave?

With the ever-growing popularity of plastic money, criminals have constantly developed ways to go around the credit card security system to take advantage of credit card owners and issuers - from actual stealing of the credit card itself to breaching of networks in order to get hold of sensitive information.

To address the problem of card theft, individual cardholders are always reminded to take care of their credit cards and to be cautious with whom and when to share credit card information. This minimizes the chance of others to take advantage of them. However, when it comes to network breaching, the ...


Are Debit Card Rates Cheaper than Credit Card Rates?

If you have a card that has a logo of Visa or MasterCard on it, it does not necessarily mean that you have a credit card in your hands. There are actually two types of cards that bear the Visa and MasterCard logo. You could be carrying either a credit card or a debit card. While these two cards serve similar purposes, they are actually two very different things. When you use a debit card to pay for something, the amount you need to pay is immediately deducted from your bank account. If you use a credit card, on the ...


Why are my credit card processing rates going up?

For a merchant to enjoy the privilege of accepting credit cards in their place of business, there are certain credit card processing fees that they have to pay for with every transaction that they process. You may have noticed that there are some differences with the processing fees that are being charged to you, and you may have noticed that the fees have been rising. There are many explanations as to why these credit card processing rates are rising, but here are a few ones that may be useful for you:

3-tier pricing this is the most popular kind of ...


What businesses qualify for EBT?

An EBT or Electronic Benefit Transfer is a system used in the United States which allows a state government to provide financial assistance as well as material benefits through plastic debit cards to welfare recipients. The most common benefits that an Electronic Benefit Transfer gives are food and cash. Food benefits are federally-authorized and can be used in purchasing non-alcoholic beverages and food products. Formerly called food stamps, the term has now been changed to SNAP or Supplemental Nutritional Assistance Program. Cash benefits, on the other hand, provide State General Assistance and Temporary Aid for Needed Families.

A recipient can ...


PCI Compliance Reduces Card Fraud

PCI Compliance or Payment Card Industry Compliance is one of the most important requirements of credit card acceptance. These safeguards have been put in place to protect sensitive information belonging to banks and card holders.PCI Compliance is essential to protect the electronic transaction industry from rampant fraud.

These requirements are so stringent; it can be difficult to achieve PCI compliance. In fact, an estimated 65% of all multi-national companies are still in the process of achieving PCI compliance. However, PCI compliance is a process that is bound by clear-cut boundaries. It is a constantly evolving mechanism and things are ...


What is a Billback? What should I be afraid of?

A billback is actually a surcharge credit card company’s use when certain transactions do not qualify for the lowest qualified rate.

The billback pricing model uses target interchange qualification levels. In this model you apply a fixed discount rate (interchange price) to all transactions regardless of their individual interchange qualification levels. The merchant is then assessed "billback" for the rate differential between the initial target and the cleared interchange qualification rate.

For example, let's assume you have a $100 retail credit card transaction for which the target rate is 1.54%, and the card actually clears at 2 ...


What is virtual gateway?

An ecommerce gateway, or also known as a virtual gateway, allows merchants to authorize and settle credit card transactions online. It is like the physical terminal, but online.

The E-commerce Gateway is an encrypted channel that passes the transaction securely from your computer or your customer's computer to the financial institutions to capture the authorization and approval. Once the transaction is complete, the information is sent back through the Gateway to complete the order and provide you with verification. The Gateway is also necessary for the secure transfer of funds from your customer's credit card to your merchant ...


Are American Express Rates Too High?

Most merchants complain that American Express charges too high a percentage and therefore they refuse to accept the card. This is a mistake. American Express does charge a higher percentage than Visa/MasterCard, but the percentage may be only half a percent or less more. American Express volume for most merchants is less than 20%. Is gaining an American Express customer worth that extra half of a percent? Most merchants are willing to discount items by 25% or more for a sale. The answer is yes. Also, American Express is the most popular business card. Many businesses can only pay ...


Which is Cheaper? Credit or Debit?

As a consumer, you are asked all the time debit or credit. Have you ever wondered why? The merchant will tell you that pin debit card transactions are more secure. This is true. But pin debit transactions are cheaper in most cases for the merchant. Pin debit transactions are more secure for you and the merchant. You also lower the processing costs for the merchant. You are doing the merchant a favor. So the next time, the merchant asks you debit or credit? Say debit.

If your store is processing both credit and debit card transactions, you may be one ...


What does EIRF mean?

EIRF is an acronym of the term Electronic Interchange Reimbursement Fee. Basically, an interchange fee is a term used in the credit card industry. This term refers to the fee which a merchant's bank or acquiring bank pays the customer's bank or the issuing bank after a merchant accepts the use of a card for a particular transaction. The issuing bank, in a payment transaction, would then deduct the interchange fee in which it pays the acquiring bank that handles the transaction in behalf of the merchant or business owner. In turn, the merchant is paid by the ...


PCI Compliance Stops Sniffers

A packet sniffer is computer software that is used to intercept traffic passing over a digital network. When data transmits back and forth, the sniffer can capture each packet and decode the content using other tools. The problem with this kind of software lies on how it is used. It has given hackers a venue to steal credit card information from a stores database. There have been several reported incidences wherein hackers used this kind of software to get credit card information and use it for their own benefit.

Now that online shopping has increased in popularity, more and more ...


Why is PCI Compliance Important

While PCI compliance is not a law, it is still very important regulation of the credit card processing industry. PCI compliance is all about how the information of cardholders is being handled, secured and stored. This is a very sensitive type of information, especially for those that handle information for thousands of people in a year. The problem with the fulfillment of PCI compliance is the hassle of showing compliance every year and the fees involved.

But despite that, this is of utmost importance for a business to be fully trusted by the Payment Card Industry, and for your company ...


How to Reduce Breakage at Your Store

Business losses are not unusual. In fact, whatever business you might have, there will always be some kind of business losses whether huge or small. If your business involves maintaining a store, then these losses which often go unexplained are common. These losses are called breakage and it is often only 3% of a company operation. Nevertheless, losses are still losses; and reducing them to a minimum is any business owner priority.
For businesses that involve a store, breakage is often higher if the store is purely cash-based. This is in contrast to stores that accept credit card transactions, where ...


What is PCI Compliance?

The Visa/MasterCard associations created the Payment Card Industry Compliance standard that must be followed by all companies that accept Visa/MasterCard. PCI compliance is a must if these companies, such as merchants or credit card companies, want to accept credit card payments. These standards must be met at all times to avoid severe penalties
There are six standards in the process of PCI compliance that must be met, such as the following:
Maintaining a secure network this refers to the kind of network that the data of the credit card and the holder is exposed to. The company must ...


Does anyone have Discover Cards?

Most merchants will take less than 5% in Discover Card Volume per month. That percentage may be growing. The Discover Card used to be independent of Visa/MasterCard association. Recently, that has changed. Discover Card is hoping to become the 3rd option to Visa/MasterCard. Most processors now process Discover Card at the same rate as Visa/Mastercard and make deposits on the same day as well.

Discover Card has made some progress in improving its brand image. Discover Card is the exclusive card of Sam Club, the Walmart owned club warehouse. Walmart is the US largest retailer. Partnering with ...


CNP Guidelines

CNP card not present is a kind of transaction that is done without the presence of both the cardholder and the card. Examples of these kinds of orders are things like mail orders or purchases on the Internet. Because of the nature of this kind of transaction, CNP card not present fraud has become quite common. Even though the merchant may issue an official receipt as proof of purchase, the company still has no specific proof that it was the cardholder himself or herself who authorized the transaction.CNP card not present fraud not only affects the buyer, but it ...


Tips for Merchants to Win Chargebacks

Chargeback reversals are the process of restoring expenditure to a consumer credit card as a result of a dispute regarding a purchase charged to his or her card. The most common reasons for a chargeback are when a consumer does not recognize a charge made to his credit card or when his purchase has not been shipped but the merchant refuses to have it refunded. Chargeback’s are essentially the consumer ultimate form of defense against unscrupulous merchants. However, credit card disputes can also be quite a hassle for a lot of merchants. While chargeback reversals were created for consumer ...


Credit Card Frauds at Restaurants - Skimming

Skimming is a form of credit card theft that involves stealing the data off a credit card during the point of sale. This crime is often committed by employees who, when no one is looking, swipe the customer credit card using a portable electronic device that is hooked to a card reader. The customer information is then extracted to the portable device. This can also be done by photocopying receipts with important information contained in them.

Skimming is a common occurrence in restaurants wherein the customer is not required to pay over the counter. Instead, a waiter approaches the table ...


What Is A MOTO Account?

If you are accepting credit card payments without holding the card or without a face-to-face encounter with the owner, you need a MOTO account. This is the abbreviation of Mail Order/Telephone Order account. Merchants get it to cater to their virtual customers. Instead of requiring your customers to come to your office and manually swipe the card, you can process the transaction by simply getting the details of their card.
How it Works? 
The MOTO works for companies that receive their sales through mail or telephone transactions from consumers (B2B MOTO would be appropriate if you receive a majority ...


The History of Credit Card Transactions

If you are accepting credit card payments without holding the card or without a face-to-face encounter with the owner, you need a MOTO account. This is the abbreviation of Mail Order/Telephone Order account. Merchants get it to cater to their virtual customers. Instead of requiring your customers to come to your office and manually swipe the card, you can process the transaction by simply getting the details of their card.

How it Works? 

The MOTO works for companies that receive their sales through mail or telephone transactions from consumers (B2B MOTO would be appropriate if you receive a majority ...


What is Visa/MasterCard Assessment Fee?

Visa and MasterCard are the two leading credit card and debit cards in the entire world. They are in operation all over the world, and people aspire to have a Visa or MasterCard credit card because of their reputation as the most respectable credit card company in the world.

For merchants who make use of the processing of Visa and MasterCard transactions in their store, they have to deal with an assessment fee for every transaction that is being made. The assessment fee is part of the interchange fee, which the card holders issuing bank charges the merchant for the ...


Boycott the Big Gulp

7/11 stores are leading the charge for credit card regulation. The company believes the discount rates have become too high and they want the consumers to fight back. On their website, 7/11 states:

The fees that 7/11 and other stores are charged when people use credit and debit cards have grown significantly over the last several years. We have no ability to negotiate and have no other choice than to go to our customers who are then forced to pay more for everything they buy because of the credit card industry system and ask them to help ...


Will Congress Set Credit Card Rates and Fees?

In June, Rep. John Conyers (D- MI) introduced a bill to Congress and Richard Durbin introducing a similar bill to the Senate to regulate credit card processing fees acquiring banks are charging the merchant. The Credit Card Fair Fee Act, S. 1212 and H.R.2695, is intended "to amend the antitrust laws to ensure competitive market-based rates and terms for merchants' access to electronic payment systems."

Will such a bill really increase competition and lower merchant rates? Doubtfully, the increase in Rewards Card usage is one of the main reasons why rates have risen in the last few years ...


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